five 'must ask' questions when considering a cloud services brokerage business model

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Jamcracker, Inc. 4677 Old Ironsides Drive Santa Clara CA, USA 95054 5 “Must Ask” Questions for Cloud Services Brokerages Steve Crawford Vice President

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The first step in considering a Cloud Services Brokerage (CSB) model for your business or IT needs is to understand and formulate the business model. This informative webinar addresses 5 key questions to consider when developing your CSB business case: Business Case Justification: Whom will I be operating the CSB for (e.g. Internal users, External customers and channels, or both) and what business issues should I be focusing on? Economic Model: What are the revenue gains and/or cost savings metrics and target results I should expect to achieve with a CSB? Vendor Management: How do I manage varying contracts, SLAs and integrations with disparate Cloud Service Providers (CSPs) being delivered via my CSB? Operating Model: What's the best approach for my organization in deploying and operating a CSB as well as supporting my users? Risk Mitigation: What are the business and technical risks with the CSB model, and how can I best mitigate them?

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Page 1: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Jamcracker, Inc. 4677 Old Ironsides Drive Santa Clara CA, USA 95054

5 “Must Ask” Questions

for Cloud Services Brokerages Steve Crawford Vice President

Page 2: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Cloud Services Brokerages (CSB)

Cloud Service Brokers

IaaS

PaaS

SaaS CSB Operators

Enablement

Employees

Customers

Cloud Providers Cloud Consumers

• Service Providers • IT Distributors • B2B Marketplaces • Enterprise & Gov’t IT

“By 2015, Cloud Services Brokerages will represent the single-largest category of growth in cloud computing.” Source: Daryl Plummer, Chief Analyst

2

Partners

Page 3: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

CSB Solution Architecture

3

Page 4: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Types of CSB Operators

4

Examples:

• Service Providers

• Distributors

• Technology OEMs

• Vertical / other marketplaces

Grow user LTP Competitive

Differentiation New Revenue

Growth External CSBs

Leverage Cloud Model

Centralize Delivery

Drive IT Coherence Internal CSBs

Examples:

• Enterprise/Government IT organizations unifying services delivery and life-cycle management for their employees.

• Associations or other communities of interest (e.g. Health Care) providing services to affiliated members.

Page 5: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

5 'Must Ask' Questions when considering your own CSB…

5

1. Business Case Justification

2. Economic Model

3. Risks and Mitigation

4. Operating Model

5. Vendor Management

N Submit your own questions for Q&A session!

Page 6: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Business Case Justification?

• For whom will I be operating the CSB?

– Internal users

– External customers

– Channels or partners

– All of the above

• What business issues should I be focusing on?

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Page 7: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

PaaS

Internal CSB Drivers Clouds Casting a Shadow on Traditional IT

Public Clouds

IT Admin

Lines-of-Businesses

Departments & Teams

Individual Employees

Enterprise …as Clouds are adopted in an

ad-hoc fashion.

IT organizations lose visibility and

control…

SaaS

Fire

wal

l

IaaS

7

Private Clouds

Page 8: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Capabilities Benefits

Provide services catalog(s) as centralized resource for all users’ needs – including private and public cloud services.

Remove incentives for user-driven “cloud sprawl” by centralizing services discovery and delivery.

Unify security, auditing and policy enforcement for internal and external resource providers.

Ensure consistent corporate governance and compliance across disparate services.

Consolidate enterprise-wide license management and internal usage monitoring.

Aggregate buying power (to reduce cost) and ensure optimum license allocation across users.

Centralize service and user life-cycle management across disparate services.

Reduce IT cloud management, delivery and support overhead costs while ensuring KPIs.

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Leverage Cloud Model

Centralize Delivery

Drive IT Coherence Internal CSB

Page 9: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

45%

40%

10% 5%

Cloud Distribution Market Share (2020 Forecast)

Communication ServicesProviders

IT Services Providers andSystem Integrators

Cloud Service Providers

External CSB Drivers Transforming IT Services Distribution

Source: IDC 9

Page 10: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Capabilities Benefits

• Provide services marketplace that includes complementary 3rd party offerings.

• Drive new sources of top-line revenue. • Increase incentives for partners to add

value to your core offerings.

• Bundle 3rd party services with existing core offerings.

• Increase customer retention and profitability.

• Drive competitive displacements via differentiation.

• Protect margins on core offerings.

• Provide unified usage experience across user/services life-cycle.

• Extend brand visibility and equity to business end-users.

• Enable existing and new services channels.

• Increase channel loyalty and profitability.

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Grow user LTP Competitive

Differentiation New Revenue

Growth External CSB

Page 11: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Economic Model?

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• What are the revenue gains and/or cost savings I should expect to achieve with a CSB?

• What metrics and target goals should I have in place?

• How do I quantify success?

Page 12: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Economic Model

• Service Providers: – New sources of revenue

– Customer ‘stickiness’ and profitability

– Brand extension and core services differentiation

• Enterprises: – Enable IT on-demand services model

– Extend governance / compliance to the cloud

– Reduce cloud risks / cost

– Business optimization and flexibility

• IT Providers & Distributors: – Recurring revenue model

– Partner loyalty and growth

• Cloud Providers: – Partner and services ecosystems

– Services channel enablement

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Page 13: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Risks and Mitigation?

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• What are the business and technical risks with the CSB model?

• How can I best mitigate them?

Page 14: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Risks and Mitigation Considerations

• Implementation

• Operations and Support

• Security and Data Integrity

• Data and Operations Continuity

• What are your risks with No CSB?

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Page 15: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Operating Model?

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• What are the different options I have in deploying a CSB?

• What's the best approach for my organization in deploying and operating a CSB?

• How do I get buy-in from my users?

• How do I support my users?

Page 16: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Operations/Support Options

• On-premise CSB

– Build

– Buy

• Hosted CSB

– Public provider

– Private CSB

• Outsource everything

• Hybrid approach

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Page 17: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Vendor Management?

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• How do I manage varying contracts, SLAs and integrations with disparate Cloud Service Providers (CSPs) being delivered via my CSB?

• Can I deliver my own internal services via a CSB, and does that change the deployment and operations model?

Page 18: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Vendor Management

• Contracts, SLAs, … – Negotiation – Monitoring – Recourse

• Services on-boarding – External – Internal

• Life-cycle management – Settlement – Help-desk – Service upgrades

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Page 19: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

What are YOUR Questions?

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Page 20: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

5+ 'Must Ask' Questions for CSB

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1. Business Case Justification

2. Economic Model

3. Risks and Mitigation

4. Operating Model

5. Vendor Management

N

Page 21: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Why Jamcracker for your CSB?

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• Experience – dedicated to services aggregation and delivery since 1999 – Cloud Services Brokerage Enablement is our sole focus

• Cloud services ecosystem enablement – Abstracting complex technology & business issues

• Technology and application agnostic – No vendor lock-in

• Proven platform, technology and business enablement – Complete “out of the box” solution including platform, cloud integrations and

managed services “wrap-around”

• Enable fast time-to-deployment/market for your CSB – With flexibility to meet emerging market needs

Why Jamcracker?

Page 22: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Daryl Plummer, Chief Analyst

Why Jamcracker for your CSB?

“By 2015, Cloud Services Brokerages will represent the single-largest category of growth in cloud computing.”

“Enterprises, service providers and cloud providers can all find something of value in Jamcracker's offerings.”

“Customers can simplify a complex situation with a single service-network approach from Jamcracker.”

Final Perspectives

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Page 23: Five 'Must Ask' Questions When Considering a Cloud Services Brokerage Business Model

Jamcracker, Inc. 4677 Old Ironsides Drive Santa Clara CA, USA 95054

Steve Crawford Vice President

More Questions?

Contact Us: [email protected]